From the Wall Street Journal:
Not least among the geopolitical realities coming to the surface at the moment is that of just who’s top dog in the Kremlin. While it’s widely thought Mr. Putin’s power trumps that of Russian President Dmitry Medvedev, an interesting wrinkle has emerged elsewhere in the new Russia that has modern-day Kremlinologists wondering whether the president might yet become more his own man. (…) The surprise in all this is that President Medvedev has decided to protest. “We need to create a normal investment climate in our country,” the President said, without mentioning Mr. Putin. “Our law-enforcement agencies and government authorities should stop causing nightmares for business.” A Medvedev adviser added that “it is not correct to destroy your own stock market . . . and wipe off $60 billion.” The Russian stock market is trading at a 22-month low. The question for Kremlinologists is whether Mr. Medvedev’s comments are evidence of some independence on his part and perhaps a looming power struggle, or merely amount to a good cop, bad cop routine. It would be heartening to think it’s the former, and that Russia’s leaders are beginning to realize there are costs to their habits of confiscation. But with foreign investors still looking to make a fast killing in Russian markets (foreign direct investment jumped by some 60% between 2006 and 2007), those costs apparently won’t be paid for some time. Meanwhile, for anyone thinking of putting money into Russia, the message should be caveat investor.